Revolut has finally secured a UK banking licence after a gruelling three-year wait. The fintech giant will now be able to hold customer deposits and offer loans, credit cards and mortgages.
However, the licence comes with restrictions, so Revolut won’t be able to launch new products in the UK just yet. Despite having nine million UK customers and 45 million worldwide, the London-based company was still classed as an electronic money institution.
It first applied for a licence in 2021, the same year it was valued at a record £26 billion. Revolut repeatedly claimed approval was imminent, stating in March 2023 that it would be given the green light “any day now”.
Chief executive Nik Storonsky said: “We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for the UK.”
UK boss Francesca Carlesi said the firm “can’t wait to get going” and added: “It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut.”
Revolut has already secured a coveted European banking licence through Lithuanian approval, equipping it to offer personal loans across key Eurozone nations like France, Germany, and Spain.
The fintech giant announced its move into a “mobilisation” phase in the UK, which means it’s readying itself for market launch but is temporarily bound to holding a maximum of £50,000 in customer deposits.
For the time being, this development won’t affect existing customers who can carry on with their current account usage.
The company stopped short of indicating how long they would be in mobilisation.
Remarkably, Revolut’s pre-tax profits soared to a record £438 million in 2023, making a monumental leap from a £25 million loss the previous year.
Based in the financial hub of Canary Wharf in London, Revolut has embarked on an ambitious global expansion, planting flags in territories such as Brazil and New Zealand throughout 2023.
